Power to Issue Bonds — Conditions of Bonds — Rights of Bondholders — Execution — Tax Exemption — Legal Investment — Conflicting Laws — Full Faith and Credit
Power to Issue Bonds — Conditions of Bonds — Rights of Bondholders — Execution — Tax Exemption — Legal Investment — Conflicting Laws — Full Faith and Credit
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The authority has the power to issue negotiable bonds from time to time in order to accomplish any of the purposes authorized by this part. The authority also has the power to issue bonds in the same manner and under the same provisions as municipalities or metropolitan governments or counties are empowered to issue bonds under the laws of this state, for the purposes authorized by this part.
All these bonds shall be payable from all or any part of the revenues, income and charges of the authority and the bonds may also constitute an obligation of one (1) or more of the creating and participating governmental entities.
The bonds shall be authorized by resolution of the board and shall bear such date, mature at such time or times, bear interest at such rate or rates payable annually or semiannually, be in such form and denominations, be subject to such terms of redemption with or without premium, carry such registration privileges, be payable in such medium and at such place or places, be executed in such manner, all as may be provided in the resolution authorizing the bonds.
The bonds may be sold at public or private sale in such manner and for such amount as the board may determine.
The resolution may include any covenants that are deemed necessary by the board to make the bonds secure and marketable, including, but not limited to, covenants regarding:
The application of the bond proceeds;
The pledging, application and securing of the revenues of the authority;
The creation and maintenance of reserves;
The investment of funds;
The issuance of additional bonds;
The maintenance of minimum fees, charges and rentals;
The operation and maintenance of the authority's treatment works;
Insurance and insurance proceeds;
Accounts and audits;
The sale of treatment works properties;
Remedies of bondholders;
The vesting in a trustee or trustees such powers and rights as may be necessary to secure the bonds and the revenues and funds from which they are payable;
The terms and conditions upon which bondholders may exercise their rights and remedies;
The replacement of lost, destroyed or mutilated bonds;
The definition, consequences and remedies of an event of default;
The amendment of such resolution; and
The appointment of a receiver in the event of a default.
Any holder of any such bonds, including any trustee for any bondholders, may enforce their rights against the authority, its board or any officer, agent or employee of the authority, by mandamus, injunction or other action in any court of competent jurisdiction, subject to the covenants included in the bond resolution.
Sums received as accrued interest from the sale of any bonds may be applied to the payment of interest on the bonds.
All sums received as principal or premium from the sale shall be applied to the purpose for which the bonds were issued, and may include, but not be limited to, expenses for fiscal, legal, engineering and architectural services, expenses for the authorization, sale and issuance of the bonds, expenses for obtaining an economic feasibility survey in connection with the bonds, and to create a reserve for the payment of not exceeding one (1) year of interest on the bonds.
Bonds issued pursuant to this part executed by officers in office on the date of the execution shall be valid obligations of the authority, notwithstanding that before the delivery of the bonds, any or all of the persons executing the bonds shall have ceased to be officers.
Bonds issued pursuant to this part, and the income from the bonds, shall be exempt from all state, county and municipal taxation except inheritance, transfer and estate taxes.
All public officers and bodies of the state, municipal corporations, political subdivisions, all insurance companies and associations, all savings banks and savings institutions, including savings and loan associations, all executors, administrators, guardians, trustees, and all other fiduciaries in the state may legally invest funds within their control in bonds of an authority.
Any bonds issued for the purpose of financing the cost of the establishment, construction, installation, acquisition, extension or improvement of any treatment works, as defined by § 68-221-603, that are to be the joint obligations of the authority and any creating governmental entity, or participating governmental entity, shall be authorized and issued by the governmental entity in the form and manner prescribed by the applicable provisions of title 5, chapter 11 [repealed] and title 7, chapter 36 [repealed], and the construction, installation, acquisition, extension or improvement of any treatment works shall be deemed to be a public works project, as defined in title 5, chapter 11 [repealed] and title 7, chapter 36 [repealed]. To the extent any of title 5, chapter 11 [repealed] and title 7, chapter 36 [repealed], relating to the terms and conditions of any bonds so issued, conflict with this section, the former shall prevail.
Any bonds upon which any creating governmental entity, or participating governmental entity, is jointly obligated with the authority may be secured by the full faith and credit and taxing powers of the governmental entity as provided in the chapters cited in subsection (i).